CAMBRIDGE INTERNATIONAL EXAMINATIONS

GCE Advanced Subsidiary Level and GCE Advanced Level

MARK SCHEME for the October/November 2012 series

9707 BUSINESS STUDIES

9707/21

Paper 2 (Data Response), maximum raw mark 60

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners meeting before marking began,
which would have considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner
Report for Teachers.

Cambridge will not enter into discussions about these mark schemes.

Cambridge is publishing the mark schemes for the October/November 2012 series for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level components and some Ordinary Level
components.

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1

Mark Scheme
GCE AS/A LEVEL October/November 2012

Syllabus
9707

Paper
21

Tiger Skateboards (TS)

(a) Explain the following terms:
(i)

mass customisation

[3]

Content:
Highly capital-intensive production system but done in a way that allows products to
have their own individual features from a menu choice. Usually computer controlled.
Level 2: Good explanation
Level 1: Partial explanation/understanding
(ii) sample.

(23 marks)
(1 mark)
[3]

Content:
The group of people taking part in a market research survey/activity chosen to represent
the overall target market.
Level 2: Good explanation
Level 1: Partial explanation/understanding

(23 marks)
(1 mark)

(b) (i) Suggest two other forms of graphical presentation for the answers to question 4
in the survey shown in Figure 1.
[2]
Bar chart. Data is discrete therefore a line graph not suitable whereas a bar chart is. Pie
chart ARA.
(1 mark for each)
(ii)

Briefly explain two reasons why Haims survey results are unreliable.

[4]

A Level Business Studies student

Sample size?
How was sample chosen?
Weaknesses in questions
ARA
Knowledge and Application
Level 2: Shows understanding of surveys/questionnaire in the context of the data.
(34 marks)
Level 1: Shows understanding of surveys/questionnaire.

Cambridge International Examinations 2012

(12 marks)

Page 3

Mark Scheme
GCE AS/A LEVEL October/November 2012

Syllabus
9707

Paper
21

(c) Analyse why the relationship between customers and the business (the 4Cs) will be
important to TS if it decides to launch the new product.
[8]
4Cs: customer solution, cost to customer, communication with customer, convenience to
customer.
Communication: many had not heard of brand name. Will be important in marketing.
Customer solution: design to their expectations.
Convenience: customers seem to be happier with internet than retail outlets.
Cost: not much known here.
ARA.
Knowledge and Application

Analysis

Level 2: Shows understanding of 4Cs in the Level 2: Good analysis of importance in

context of business.
context.
(34 marks)
(34 marks)
Level 1: Shows understanding of 4Cs.
(12 marks)

Level 1: Limited analysis of importance.

(12 marks)

(d) Discuss the factors influencing motivation of the R&D team and motivation of the
sales team at TS.
[10]
R&D team: exciting job, freedom. Awards won travel perks. Pay doesnt seem to be positive.
Management style etc.
Sales team: Do they work better with commission? May link to targets.
ARA.
Knowledge and Application

Analysis and Evaluation

Level 2: Shows understanding of motivation Level 2: Good analysis of factors or good.

in the context of business.
analysis in context.
(34 marks)
(36 marks)
Level 1: Shows understanding of motivation.
(12 marks)

Level 1: Limited analysis of factors.

(12 marks)

Cambridge International Examinations 2012

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2

Mark Scheme
GCE AS/A LEVEL October/November 2012

Syllabus
9707

Paper
21

Bestmove partnership (BM)

(a) Explain the following terms:
(i)

corporate objectives

[3]

Content:
The long term goals of a corporation that give focus and direction to the business. These
form the foundation for the strategic plan of the business.
Level 2: Good explanation
Level 1: Partial explanation/understanding
(ii)

(23 marks)
(1 mark)

internal growth.

[3]

Content:
Expansion by means of opening new branches, shops, factories. Contrasts with external
(takeovers etc.). Can be slow.
Level 2: Good explanation
Level 1: Partial explanation/understanding

(23 marks)
(1 mark)

(b) (i) Refer to Table 1. Calculate the net profit margin for the first year.

[2]

NPM = 30/100 100 = 30%

Correct answer: 2 marks
Attempt: 1 mark
(ii) Briefly explain why cash flow might be a problem for BM.

[4]

Income comes after costs have been incurred delays in customer payments.
Knowledge and Application
Level 2: Shows understanding of cash flow in the context of the business.
(34 marks)
Level 1: Shows understanding of cash flow.

Cambridge International Examinations 2012

(12 marks)

Page 5

Mark Scheme
GCE AS/A LEVEL October/November 2012

Syllabus
9707

Paper
21

(c) Analyse the extent to which process innovation (improving information flows) could
help BM.
[8]
The use of new or much improved production method or service delivery method.
The services provided by BM are largely information flows and monitoring. Currently a range
of systems is used. With some duplication of work.
Re-designed system could streamline what happens and avoid duplication/conflicting
information.
ARA.
Analysis likely to come from considering benefits and costs.

Knowledge and Application

Analysis

Level 2: Shows understanding of process Level 2: Good analysis in context.

innovation in the context of business.
(34 marks)
(34 marks)
Level 1: Shows knowledge of process Level 1: Limited analysis of help to BM.
innovation.
(12 marks)
(12 marks)

(d) Evaluate the factors that John needs to consider before opening the BM office in your
country.
[10]
Content:
Reference to candidates country needed for context
Market/marketing
Competition
Growth potential
Laws, regulations
Management
Employees
ARA.
Knowledge and Application

Analysis and Evaluation

Level 2: Shows understanding of location/ Level 2: Evaluation of factors in context or

factors in the context of business/country.
good analysis.
(34 marks)
(36 marks)
Level 1: Shows knowledge of location/factors.
(12 marks)

Level 1: Limited analysis of factors.

(12 marks)

Cambridge International Examinations 2012